Global Home Equity Lending Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

Global Home Equity Lending Market is segmented by Types (Fixed Rate Loans, Home Equity Line of Credit), by Service Providers (Banks, Online, Credit Union, Others), and by Regions (North America, South America, Europe, Asia Pacific, Middle East & Africa).

Market Snapshot

Global Home Equity Lending Market
Study Period: 2018-2027
Base Year: 2021
Largest Market: North America
CAGR: >6 %

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Market Overview

The home equity loans market has attained significant growth and is expected to follow the same trend during the forecast period. Home equity loans allow homeowners to borrow against the equity in their homes. Equity is the difference between your home’s value and what you owe on your mortgage. Home equity loans are popular among borrowers who want to use the funds for home improvement projects or to pay off or consolidate high-interest debt. A major growth opportunity is arising for banks and credit unions in home equity loans and lines of credit because of a massive increase in home prices.

A major growth opportunity is arising for banks and credit unions in home equity loans and lines of credit because of a massive increase in home prices. Higher real estate values and the lowering of regulatory restrictions are encouraging Canadians to use their homes as collateral for loans. In February 2022, the seasonally adjusted balance of home equity lines of credit increased 1% to USD 128 billion. Residential mortgage debt accounts for 74% of all household debt in Canada, which helps to build net worth, whereas lines of credit account for 16% and credit card debt accounts for 4%.

Scope of the Report

A complete background analysis of the global home equity lending market, which includes an assessment of the parental market, emerging trends by segments and regional markets, significant changes in market dynamics, and a market overview, is covered in the report. Global Home Equity Lending Market is segmented by Types (Fixed Rate Loans, Home Equity Line of Credit), by Service Providers (Banks, Online, Credit Union, Others), and by Regions (North America, South America, Europe, Asia Pacific, Middle East & Africa).

Types
Fixed Rate Loans
Home Equity Line of Credit
Service Providers
Banks
Online
Credit Union
Others
Regions
North America
South America
Europe
Asia-Pacific
Middle-East and Africa

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Key Market Trends

Rise in Housing Infrastructure would propel demand for Home Equity Lending

The rising population, burgeoning need for quality housing and infrastructure, and increasing trend of nuclear families favor the residential infrastructure development growth. Rise in home prices, trending home improvements and innovations, tax deduction of the interest, less payment of interest as compared to other ways of borrowings, availability of lump sum amount of cash up front, and fixed monthly payments are the factors that act as a driver for the global home equity lending market. Bank of America Corp., the largest U.S. home equity lender among banks and thrifts, reported $40.73 billion in home equity loans and lines of credit as of Dec 2019. With the rising construction of housing units worldwide, home equity lending requirements would witness an upsurge in the following years.

Global Home Equity Lending Market

Surge in House Prices Boosting Home Equity Lending Market

House prices rose by more than 5% in 23 countries out of the 60 countries in the IMF's Global House Price Index for 2020. The top countries that witnessed the highest hike are Luxembourg, Turkey, New Zealand, and Canada. Leading the surge were cities in the Americas, where housing prices increased 15% on average. Cities in the Asia-Pacific region lagged, registering an average 9% annual price increase, according to the agency’s Global Residential Cities Index for the fourth quarter of 2021. Homeowners are becoming more equity rich and will be able to tap into the reserve available as home prices continue to rise. In the coming years, it is expected that homeowners will continue to use home equity loans more. Because home equity loans are secured as the market value of the property surges, a rise in the property's price will offer a large enough margin to take out a loan against it.

Global Home Equity Lending Market

Competitive Landscape

The report covers major international players operating in the global home equity lending market. In terms of market share, the market is consolidated, and major players dominate. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and tapping new markets. Some major global Home Equity Lending Market players are Bank of America Corporation, Discover Bank, Member FDIC, and many more.

Recent Development

  • On June 14, 2022, Bank of America Expanded Virtual Account Management To Companies In The U.S. The geographical expansion follows last year’s edition of the Netherlands to the existing UK and Ireland capabilities. Through VAM, companies can open virtual accounts that act as sub-ledger accounts tied to a physical account.
  • On May 3, 2022, LoanDepot LLC is set to launch all digital mello HELOC as rising interest rates, and high inflation makes home equity lines of credit a smart source of capital for many homeowners.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Insights on impact of technology and innovation in Global Home Equity Lending Market

    5. 4.5 Insights on Performance of Home Equity Lenders Globally

    6. 4.6 Industry Attractiveness - Porters' Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitutes

      5. 4.6.5 Intensity of Competitive Rivalry

    7. 4.7 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 Types

      1. 5.1.1 Fixed Rate Loans

      2. 5.1.2 Home Equity Line of Credit

    2. 5.2 Service Providers

      1. 5.2.1 Banks

      2. 5.2.2 Online

      3. 5.2.3 Credit Union

      4. 5.2.4 Others

    3. 5.3 Regions

      1. 5.3.1 North America

      2. 5.3.2 South America

      3. 5.3.3 Europe

      4. 5.3.4 Asia-Pacific

      5. 5.3.5 Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concetration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Bank of America Corporation

      2. 6.2.2 Discover Bank

      3. 6.2.3 Member FDIC

      4. 6.2.4 LoanDepot LLC

      5. 6.2.5 Spring EQ LLC

      6. 6.2.6 TBK BANK

      7. 6.2.7 SSB

      8. 6.2.8 U.S. Bank

      9. 6.2.9 Pentagon Federal Credit Union

      10. 6.2.10 The PNC Financial Services Group, Inc.*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNTIES AND FUTURE TRENDS

  8. 8. DISCLAIMER AND ABOUT US

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Frequently Asked Questions

The Home Equity Lending Market market is studied from 2018 - 2027.

The Home Equity Lending Market is growing at a CAGR of >6% over the next 5 years.

North America holds highest share in 2021.

Bank of America Corporation, Discover Bank, Member FDIC, LoanDepot LLC, Spring EQ LLC are the major companies operating in Home Equity Lending Market.

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